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Analyst Still Positive on Stronghold Digital Despite Miss, Citing Miner’s Low Costs
The bitcoin miner’s stock tumbled more than 30% after it missed earnings estimates and said it won’t reach its 2022 hashrate goal.
By Aoyon Ashraf
Updated May 11, 2023, 5:59 p.m. Published Mar 30, 2022, 2:01 p.m.
Bitcoin miner Stronghold Digital (SDIG), which uses waste coal for energy, remains one of the lowest-cost miners and is expected to get over its short-term setbacks, said an analyst for investment bank Compass Point.
- “While the near-term issues certainly impact our estimates for SDIG, the company remains one of the lowest cost BTC miners in the U.S., and we believe the management team's experience operating power assets will allow it to get over the hump with the Scrubgrass facility,” analyst Chase White wrote in a research note.
- The miner’s stock tumbled more than 30% on Monday post-market and was down a similar amount on Tuesday morning to $6.92 after the company reported fourth-quarter revenue and earnings that both came in well short of the analysts' consensus estimate. Stronghold also said that it will miss its original target of reaching 8.0 exahash per second of capacity by the end of the year.
- Compass Point’s White said the miss was largely driven by a substantially lower capacity utilization and higher cost at its Scrubgrass power plant in Pennsylvania. uncertainty around receiving new miners from MinerVa.
- White lowered his 12-month price target on Stronghold to $30 from $41 but maintained his buy rating on the stock.
- Ahead of the release of earnings results on March 29, an analyst for Wall Street investment bank DA Davidson lowered his price target for Stronghold by 40%, citing slower-than expected operational progress to date and supply chain challenges.
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What to know:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
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VanEck's new Avalanche ETF filing to include staking rewards for AVAX investors
The fund will use Coinbase Crypto Services as its initial staking provider and pay a 4% service fee, with rewards accruing to the fund and reflected in its net asset value.
What to know:
- VanEck has updated its filing for an Avalanche ETF, VAVX, to include staking rewards, aiming to generate income for investors by staking up to 70% of its AVAX holdings.
- The fund will use Coinbase Crypto Services as its initial staking provider and pay a 4% service fee, with rewards accruing to the fund and reflected in its net asset value.
- If approved, the fund will trade on Nasdaq under the ticker VAVX, tracking AVAX's price via a custom index, and will be custodied with regulated providers, including Anchorage Digital and Coinbase Custody.
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